Fed Hangover Hits Stock Market

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as Fed hangover hits stock market. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

The S&P 500 (SPY) lost -0.21% today. Sector decliners led advancers 7 to 4 as shown below in the sector graph. Energy (XLE) -1.74% led decliners down. Communication services (XLC), consumer staples (XLP), industrials (XLI), materials (XLB), technology (XLK) and utilities (XLU) each had minor losses of less than 1%. Consumer discretionary (XLY), financials (XLF), healthcare (XLV) and real estate (XLRE) each had small gains of less than 1%.

The Dow Jones index dropped 122 points (-0.46%) to close at 26,307. The Nasdaq gave back 12 points (-0.16%) to settle at 8,036.

Fed Hangover Hits Stock Market

Stocks fell for the second consecutive day as investors felt a Fed hangover. Fed Chair Powell said low inflation was “transitory,” implying an interest rate cut might not be in the future, disappointing investors. When reading the above CNBC article, I came across this quote regarding monetary stimulus, “I think investors need to get into their heads that the period of low inflation, low interest rates and monetary policy continuing to provide nothing but stimulus is over,” Abby Joseph Cohen, senior U.S. investment strategist at Goldman Sachs, told CNBC’s “Squawk on the Street. ” “Markets instead should be looking at the economy and profits. It’s a good picture and one we think makes sense.”

Key Takeaways…

I took the following CNBC screenshots today regarding the risks to the rally and missing from the rally:

About the authorTim Link

My goal is to provide a blog that consolidates stock market information for the average investor from at least five credible sources including stock reviews, analysis, financial news and market trends by sector.